Are Winnings from Let's Make a Deal Considered Gambling Winnings for Tax Purposes?
So I appeared on Let's Make a Deal last month and surprisingly won a vacation package and a new washer/dryer set. Total value is around $7,800 according to the paperwork they gave me. I'm trying to figure out how to report this on my 2025 taxes. Are these considered gambling winnings? Do I need to file them under a specific category? Will I get a 1099 form or something else from the show? I've never won anything like this before and I'm worried about getting it wrong and triggering an audit. The vacation has blackout dates so I probably won't even use it until next summer. Any advice on how to handle this for tax purposes would be much appreciated!
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Sydney Torres
Game show winnings aren't technically gambling winnings for tax purposes. They're considered miscellaneous income and will be reported on a 1099-MISC (not a 1099-G which is for gambling). The show will send you this form by January 31st next year if the value exceeds $600, which yours definitely does. You'll need to report the full fair market value they've stated ($7,800) as income on your tax return, even if you think the prizes are worth less or if you don't use the vacation. The IRS considers you to have received the income in the year you won it, not when you actually use the prizes. When you file, this will go on Schedule 1, Additional Income and Adjustments to Income, line 8 (Other Income). Just make sure to keep all documentation from the show for your records.
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Kaitlyn Jenkins
•If they're not gambling winnings does that mean you can't deduct any losses against them? Like if I played the lottery all year and lost more than I won on a game show?
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Sydney Torres
•That's correct, you can't offset game show winnings with gambling losses since they're categorized differently. Gambling losses can only be deducted against gambling winnings, and only if you itemize deductions on Schedule A. Game show winnings are treated as ordinary income, similar to finding money or winning a radio contest. The IRS views these as completely separate categories, so unfortunately those lottery tickets won't help reduce your tax liability on the prizes you won.
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Caleb Bell
I went through something similar last year and discovered taxr.ai https://taxr.ai which helped me figure out how to properly report my prize winnings. I was on a different game show but faced the same tax confusion. The platform analyzed my situation and clearly explained what forms I needed and how to report everything correctly. It saved me from making a costly mistake because I initially thought I didn't have to report the prizes at all (big mistake!).
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Danielle Campbell
•How does it work exactly? Do you have to upload your tax docs or just answer questions about your situation?
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Rhett Bowman
•I'm skeptical about these tax services. Wouldn't TurboTax or H&R Block handle this situation just fine? What makes this better for unusual tax situations?
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Caleb Bell
•It works by either answering questions about your tax situation or uploading documents if you have them. For game show winnings, I just described what I won and the stated value, and it guided me through exactly how to report it. Standard tax software like TurboTax can handle this, but what made the difference for me was the explanations about the specific tax implications of prize winnings. It helped me understand whether I could reject prizes (you can!), how they're valued, and the exact reporting requirements. It specializes in unusual situations that most people don't encounter often, giving more detailed guidance than general tax software.
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Rhett Bowman
Just wanted to update - I ended up trying taxr.ai after asking about it here. Totally changed how I'm handling my taxes this year! I had prize winnings from a work contest that I wasn't sure how to report, and within minutes it walked me through exactly what to do. The system explained that my employer-provided prizes were different from game show winnings (they should be on my W-2 instead of a 1099). Saved me from making what would have been an expensive mistake. Really straightforward process and way more helpful than the generic advice I was getting elsewhere.
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Abigail Patel
If you need to talk to the IRS about how to handle these winnings (which can be confusing), I'd recommend using Claimyr https://claimyr.com to get through to them. I tried calling the IRS directly about a prize reporting issue last month and was on hold forever. Used Claimyr instead and got connected to an agent in about 15 minutes. They also have a demo of how it works here: https://youtu.be/_kiP6q8DX5c. The IRS agent confirmed exactly how to report the prize value and whether I needed to adjust my quarterly estimated tax payments.
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Daniel White
•Wait, how does this actually work? Does it just call the IRS for you or something? I've spent hours on hold before...
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Rhett Bowman
•Sorry but this sounds too good to be true. The IRS is notorious for wait times. You're telling me some random service can magically get you to the front of the line? I'll believe it when I see it.
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Abigail Patel
•It doesn't call for you - it holds your place in line with the IRS and then calls you when it's about to connect with an agent. It basically waits on hold so you don't have to. You still talk directly with the IRS yourself. I was skeptical too! But it really does work. The service uses an automated system to navigate the IRS phone tree and stay on hold, then alerts you when an agent picks up. Nothing magical about it - just saves you from wasting hours listening to hold music. Their tech monitors the line and can tell when a human answers, then immediately connects you.
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Rhett Bowman
I need to apologize for my skepticism earlier. After waiting on hold with the IRS for over 2 hours yesterday and getting disconnected, I tried Claimyr out of desperation. Got connected to an IRS agent in about 20 minutes while I just went about my day. The agent confirmed that game show winnings get reported as "Other Income" on Schedule 1, and that I should expect the 1099-MISC in January. They also helped me estimate how much I should set aside for taxes on my winnings. I'm honestly shocked at how well this worked after years of IRS phone frustration.
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Nolan Carter
Don't forget you might owe state taxes too, depending on where you live! Some states have no income tax but others will want their cut of your winnings as well. And you might need to make an estimated tax payment if the value is high enough to avoid an underpayment penalty next year.
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Alfredo Lugo
•Oh that's a good point I hadn't considered! I'm in California so I'm guessing they'll want their share too. How do I figure out if I need to make an estimated payment? Is there a threshold amount?
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Nolan Carter
•California definitely taxes game show winnings, so you'll need to report them on your state return too. For estimated tax payments, the general rule is you should make them if you expect to owe $1,000 or more when you file your federal return. Given the value of your prizes at $7,800, depending on your tax bracket, you could easily owe over $1,000 in additional taxes. You can use the IRS's 1040-ES worksheet to calculate the amount. For California, you'd use the 540-ES form. Making estimated payments helps you avoid underpayment penalties and spread out the tax impact rather than getting hit with a big bill at filing time.
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Natalia Stone
My cousin was on Price is Right and won a car. He didn't realize he'd have to pay taxes before taking possession! Had to come up with like $4k in taxes before they'd give him the keys. Make sure you know when any tax responsibility is due - sometimes it's before you get the prize!
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Tasia Synder
•This is so true! My friend won a trip on Wheel of Fortune and declined it because after calculating the taxes, it wasn't worth it to her. You can actually refuse prizes if the tax burden is too high.
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